Etihad a friend in need for Jet Airways? Unhappy with Tata offer, Naresh Goyal turns to old partner
Jet Airways has been going through financial turbulence for quite a sometime now and has even delayed salaries of its staff many times.
Beleaguered Naresh Goyal-led Jet Airways is struggling to keep its head above water as its finances deteriorate. That has been the case for months now. Then came reports that the Tata Group may pitch in to rescue the airline. However, a reportedly 'unhappy-with-the-deal' Goyal may well turn to an old friend for aid and hand over the operational reins of the airline to its partner Etihad Airways. Goyal and his wife own 51% of Jet Airways jointly while Etihad holds a 24 per cent stake.
Jet Airways has been going through financial turbulence for quite a sometime now and has even delayed salaries of its staff many times. In the last few months, the airline has even 'rationalised' its workforce and some of its top officials have also quit.
An Economic Times report has claimed that Goyal is willing to reduce his stake in the company to as low as 15 per cent in exchange for a fresh cash infusion through equity and soft loans. The report said that Goyal has met top Etihad Management in this regard. With fresh fund infusion, Etihad's stake in the airline may go as high as 49 per cent.
Also Read: PM Modi boards crisis hit Jet Airways flight, prods Tata group to save Naresh Goyal airline
Goyal is reportedly 'unhappy' with the deal offered by Tatas as they want a complete ownership stake in the airline. If Goyal's deal with Etihad takes off, this will allow him to continue as the chairman of Jet Airways.
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Last month, Etihad had confirmed its proposal of a financial restructuring and support plan for Jet Airways. "This plan includes a USD 35 million cash pre-purchase payment to Jet Airways by Jet Privilege, which is majority-owned by Etihad Airways," PTI had reported.
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